MARKET COMMENTARY
Natural rubber prices ruled flat in the local market on Monday.
Market tone remained silent as the top rubber growing state in India, Kerala was celebrating its national festival Onam.
RSS4 stayed near Rs.186 a kg while on NMCE, October rubber futures ended 0.59 per cent down in volume less trades.
Resumption of rains in major natural rubber growing areas likely to provide firm support to prices though higher imports and widening gap between prices in the local and international market could cap gains.
Sentiments mixed in the overseas natural rubber market on Tuesday.
TOCOM rubber futures reopened today after an extended weekend holiday and is seen inching up following an initial dip towards a two week low on currency fluctuation.
MARKET NEWS
According to the Qingdao International Rubber Exchange, rubber inventories in Qingdao, China’s main hub for the commodity, fell to 283,100 metric tons today, from 295,000 tons on Aug. 30.
Thai rubber farmers resume protests demanding higher price for their produce despite the government offer of 21.2 billion baht subsidy.
According to the Rubber Board, natural rubber imports in Au natural rubber imports in August more than doubled from a year ago to 40,809 tonnes. The country’s production during the month fell 5.5 percent on year to 69,000 tonnes, while consumption eased by 4 percent to 80,000 tonnes.
Thai govt set up three sub-committees to solve the low rubber prices after the network of rubber farmers from 18 southern provinces accepted the government’s subsidy offer. Also, the Bank for Agriculture and Agricultural Cooperatives (BAAC) expects the subsidy money for rubber farmers to be ready for distribution in one month.
The natural rubber (NR) production in India during the current fiscal (2013-2014) is likely to be lower than what was projected earlier, said Smt. Sheela Thomas, Chairman, Rubber Board while delivering the presidential address in the 172nd meeting of the Rubber Board.
TECHNICAL VIEW
RUBBER Oct NMCE
Prices are held inside 18500-18100 ranges and require a breakout from either the sides with considerable volume for further directional moves.
TURNAROUND
| Resistances | LEVELS | Supports |
| 18500/18700 | 18500-18100 | 18250/18100 |
| 18860-18970 | 17950/17750 | |
| 19060/19250 | 17600-17500 |
Source: Geojit Comtrade
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